June 30, 2009

China made public on Tuesday regulations aimed at cracking down on the use of virtual currencies amid worries that a huge underground economy was developing out of the country’s online gaming community.

[...] Beijing said the regulations would curtail trading in virtual currencies, prevent online gambling and restrict virtual currency from being exchanged for cash or used to buy real-world goods.

Among other things, Chinese officials have worried that online currencies could ultimately serve as an alternative to China’s official currency, the renminbi, and have an impact on the country’s financial system.